by Lisa Cook on employment and inflation are converging.
“The risks to achieving our employment and inflation goals are becoming better balanced,” Cook argued during an economics conference held at Harvard University. “However, fully restoring price stability may require a cautious approach in easing monetary policy over time,” she clarified.
According to Cook, the disinflation process has been “even and uneven”, so caution must be increased to shift towards returning inflation to the 2% target with a “solid” labor market. During its meeting last week, the body left interest rates unchanged at their highest level since January 2001 for the fifth consecutive time.
Forecasts 2024
In its macroeconomic forecasts, the Federal Open Market Committee (FOMC) announced that rates could fall up to three times this year, although some of the organization’s members have estimated two or fewer cuts, two of them even predicting that They would not be modified in 2024.
Raphael Bostic, president of the Atlanta Federal Reserve and voting member of the FOMC, predicted this Monday a single rate cut for this year.
